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California Solar Initiative

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Content

Overview of CSI

What’s New

CSI Status Update

CSI Field Inspection Process

CSI Metering

CSI Application Process

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Overview of CSI

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CSI Budget Total authorized CPUC CSI budget is $2.165 Billion Funded by electric distribution rates Regional CSI incentive budgets are as follows:

$223M California Center for Sustainable Energy

$996MSouthern California Edison Company

$946MPacific Gas and Electric Company

$223M

$996MSouthern California Edison Company

$946MPacific Gas and Electric Company

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CSI Eligible Customers Eligible customer projects must be within the service territory of

and must receive retail level electric service from:

• Pacific Gas and Electric (PG&E)

• Southern California Edison (SCE)

• San Diego Gas & Electric (SDG&E)• The California Center for Sustainable Energy administers the

CSI in the SDG&E Service Territory

Municipal electric utility customers are not eligible to receive incentives

Municipal electric utilities are required to have a CSI solar program for their customers starting in 2008

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CSI Eligible Projects Residential Retrofit Projects1

Non-Residential Retrofit and New Construction Projects

Minimum System Size of 1 kW

Maximum System Size of 5 MW

• Incentives will be capped to the First MW

• 1 MW under SGIP and 1 MW under CSI allowed

• Future system expansions allowed

Installed capacity at site may not exceed actual energy consumed during previous 12 months• Maximum System Capacity = 12-months previous kWh usage /

(0.18 x 8760 hr/year)• New Construction and Future Load Growth must be substantiated

1) New construction residential projects administered by the CEC under the New Solar Homes Partnership Program

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CSI Incentive Structure

As of January 1, 2007, the CSI program pays: Expected Performance-Based Buydown (EPBB)

incentives for PV projects < 100 kW • EPBB is an up-front incentive based on an estimate of the

system's future performance

• EPBB combines the benefits of rewarding PV System performance with the administrative simplicity of a one-time incentive paid at the time of project installation

Performance-Based Incentives (PBI) for PV projects > 100 kW• Monthly payments based on measured kWh output of solar

power produced over a 5-year period

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Expected Performance Based Buydown (EPBB)

Applies to Systems < 100 kW Paid upfront, based on the following incentive rates

(based on current incentives reserved) EPBB Incentive = EPBB Incentive Rate x System

Rating x Design Factor Design Factor = Simulated solar output of proposed

system/Simulated solar output for optimal system• Takes into consideration location, orientation, tilt and

shading effects on system performance

• EPBB Design Factor Tool: www.csi-epbb.com

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Performance Based Incentives (PBI)

Applies to systems ≥100 kW Paid monthly over a 5-year period, based on the

following incentive rates: PBI Incentive = PBI Incentive Rate x Measured PV

System Energy Output Reservation Amount will vary by capacity factor used

• Reservation Amount = PBI Incentive Rate x .18 x 8760 x CSI System Size x 5 year (fixed systems)

• Reservation Amount = PBI Incentive Rate x .22 x 8760 x CSI System Size x 5 year (tracking systems)

Customers may opt into PBI for systems < 100 kW

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CSI Incentive RatesIncentive structure: Rebates automatically decline based upon reservations reserved Higher rebates for non-taxable entities

  PG&E (MW) EPBB Payments (per Watt) PBI Payments (per kWh)

Step ResNon-Res Residential Commercial

Gov't / Nonprofit Residential Commercial

Gov't / Nonprofit

1 - - n/a n/a n/a n/a n/a n/a

2 10.1 20.5 $2.50 $2.50 $3.25 $0.39 $0.39 $0.50

3 14.4 29.3 $2.20 $2.20 $2.95 $0.34 $0.34 $0.46

4 18.7 38.1 $1.90 $1.90 $2.65 $0.26 $0.26 $0.37

5 23.1 46.8 $1.55 $1.55 $2.30 $0.22 $0.22 $0.32

6 27.4 55.6 $1.10 $1.10 $1.85 $0.15 $0.15 $0.26

7 31 62.9 $0.65 $0.65 $1.40 $0.09 $0.09 $0.19

8 36.1 73.2 $0.35 $0.35 $1.10 $0.05 $0.05 $0.15

9 41.1 83.4 $0.25 $0.25 $0.90 $0.03 $0.03 $0.12

10 50.5 102.5 $0.20 $0.20 $0.70 $0.03 $0.03 $0.10

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What’s New

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What’s New Recent TOU decision

PAs to file Advice Letter for proposed CSI Handbook changes

CSI Program Forum held on June 29th in Irwindale (Southern California)

CSI Program Administrators hired technical experts to assess incentives and filed CSI Handbook changes on June 1, 2007

Beta testing for Statewide Database began in June

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Update on Time of Use (TOU) Rate Requirements

TOU tariffs are now optional for CSI applicants not otherwise required to take service on TOU tariffs, until the CPUC develops requirements and approves new PG&E TOU tariffs.

Customers who have already applied for CSI rebates have the option of remaining on their TOU rate schedule or returning to their prior electricity rate schedule or an otherwise applicable flat rate schedule for which they qualify.

If customers were required to switch to a TOU rate schedule in order to receive their CSI rebate, they may be eligible to receive a credit for any difference between their bill under the TOU rate schedule and a qualifying flat rate schedule.

See the Clean Power Estimator at http://www.consumerenergycenter.org/renewables/estimator/index.html

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PAs Advice Letter - Procedures

• PAs intend to file an Advice Letter with the CPUC to recommend changes to CSI Handbook

• Proposed changes are not effective until Advice Letter is approved

• Regulatory procedure allows for a Protest Period

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Proposed Handbook Changes

• System Description Worksheet: Eliminate this requirement for all residential systems and non-residential systems under 10 kW

• Proof of Insurance for Installers: Eliminate this requirement within the CSI Program

• Application for Interconnection: Eliminate the requirement to submit Interconnection application at the same time as the rebate application for all residential systems and non-residential systems under 10 kW (2-Step Applications)

• Electrical System Sizing Documentation: Eliminate load justification requirement for systems less than 5 kW

• Advanced Reservation prior to Interconnection: Eliminate the Handbook requirement to have an approved reservation prior to interconnection. 

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Proposed Handbook Changes

• Self-Installations – Revise conflicting language in handbook to allow for self-installations to be eligible for CSI incentives

• Copy of Executed PMRS Contract or Cost Cap Exemption Documentation – Add to final paperwork (Incentive Claim Form package)

• Correct Minor Typos – Please identify any you have seen!

• Change SDREO to CCSE

Changes due to Regulatory Decisions

• Update MW Trigger Section on how to allocate MWs that have dropped out

• Updated language on EPBB calculator

• Update TOU Section to reflect new changes

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CSI Status Update

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http://www.csi-trigger.com/

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Statewide Trigger Point Tracker

http://www.csi-trigger.com

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Program Activity to date

Customer Class StatusTotal # of Projects

Total System Size (kW)

Total Incentive Amount

Residential

Active Projects1 1,490 7,139.351 $23,876,973

Incentive Claim Projects Received2 121 541.189 $1,353,969

Completed 92 376.162 $940,430

Non-residential

Active Projects1 215 44,867.176 $139,325,628

Incentive Claim Projects Received2 2 108.934 $242,968

Completed 1 8.283 $15,738

Total 1,921 53,041.095 $165,755,706

1 Applications currently under review or have been reserved for CSI funding

2 Incentive Claim packages submitted that are under review, waiting for additional documentation from customer, or completion of field inspection before payment can be issued

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Program Activity to date

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CSI Field Inspection Process

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CSI Inspections Inspections will:

• Verify that equipment nameplates and counts match those submitted on the Incentive Claim Form

• Include measurements to verify that system tilt, orientation, and shading values are consistent with values used in the EPBB calculator and submitted along with the Incentive Claim Form

• Verify that system is operational and output is reasonable for conditions at time of inspection

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CSI Inspections Coordinating Inspections

• Inspector will require physical access to the equipment to perform inspection.

• Applicant is not required to attend inspection, but it is recommended.

• We prefer that the applicant coordinate with customer to provide necessary access to inspectors.

• Upon request by the applicant, the inspector will coordinate access directly with the customer.

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Equipment Verification

Module verification

• If PV modules are mounted such that nameplates aren’t visible, we will request invoice to verify make and model.

• Number of modules installed is verified by the inspector on-site.

Inverter verification

• Inspector needs to verify make, model, and number of inverters installed and that PV system is operational.

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Installation Verification Verify Inputs

• Inspector will measure the tilt, azimuth and shading of array(s) on site and check against submitted values.

Correct Inputs

• The EPBB design factor will be recalculated if measured values differ significantly from submitted values.

Approve Inputs

• If submitted values are reasonable compared to measured values then the inspector will approve inputs as submitted.

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Common Mistakes

Azimuth• Not corrected for magnetic declination• Compass used near metal or magnet• Bad compass

Shading• Misunderstanding of “minimal shading”• Incorrect shading analysis

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Measuring Azimuth

Azimuth• Lookup magnetic declination for location

(http://www.ngdc.noaa.gov/seg/geomag/jsp/Declination.jsp)

• Stay 10-15 ft. away from metal or magnets

• Add magnetic declination to compass reading

• Check reading against tools like GoogleEarth

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Magnetic Declination Correction

http://www.ngdc.noaa.gov/seg/geomag/icons/case1.gif

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Measuring Shading

• Minimal shading requires at least 2:1 distance to height ratio (equal to 26.6° altitude angle) of any object between 80° to 280° orientation.

• Systems without minimal shading must submit monthly solar access for site.

• Solar access can be measured with tools such as the Solar Pathfinder or Solmetric SunEye.

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Minimal Shading

40 Feet

10 Feet

Object Height is 10 feet above the array.2x Height = 20 feetDistance = 40 feet2x Height < Distance = Minimal ShadingNO SHADE IMPACT REQUIRED

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Not Minimal Shading

25 Feet

Object Height is 15 feet above the array.2x Height = 30 feetDistance = 25 feet2x Height > Distance = Not Minimal Shading

SHADE IMPACT REQUIRED

15 Feet

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Case Study

9 panels tilted S

21 panelsS

Neighbor’s tree

1

23

4

7

56

8

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Compile Data

• Jan 65 100 100 90 90 100 100 70• Feb 70 100 100 91 91 100 100 73 • Mar 74 100 100 92 93 100 100 75• Apr 77 100 100 93 94 100 100 77• May 80 100 100 95 95 100 100 80• Jun 85 100 100 96 96 100 100 83• Jul 90 100 100 97 97 100 100 85• Aug 85 100 100 98 98 100 100 86 • Sep 80 100 100 96 95 100 100 83 • Oct 75 100 100 93 93 100 100 79 • Nov 70 100 100 92 91 100 100 76 • Dec 65 100 100 90 90 100 100 72

1 2 3 4 5 6 7 8 Reading

% of

Solar

Availability

per month

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Calculate Average

Jan 89 Jan 90Feb 90 Feb 91Mar 92 Mar 92Apr 93 Apr 93May 94 May 94June 95 June 95July 97 July 96Aug 96 Aug 96Sept 94 Sept 95Oct 92 Oct 93Nov 91 Nov 92Dec 89 Dec 91

Array1

Reads1-4

Array2

Reads5-8

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Calculate Impact

Run EPBB tool per ArrayArray 1 – 9 panelsArray 2 – 21 panels

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Shade: EPBB vs PBI

• PBI– Incentive based on kWh generated

• Winter shade matters• Entire year’s system availability determines

incentive

• EPBB• Only summer availability determines incentive• Much more forgiving of total shade impact

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Shading Measurement Tips

• Account for tilt & azimuth in shading analysis software (Solar Pathfinder Assistant & Solmetric SunEye). This will affect results.

• Communicate tool and method used to inspector if possible.

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Inspection Results

• Inspector will communicate any discrepancies found with applicant attending inspection.

• Inspector will recalculate EPBB design factor if necessary and submit with report.

• Inspection report is submitted to the Program Administrator by the inspector.

• Program Administrator will contact applicant if discrepancies were found.

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CSI Metering

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Meter RequirementsAll Systems Must Have Metering &

Performance Monitoring• Performance meters are in addition to utility revenue meters

• Must have 5-yrs of independent performance monitoring

• Subject to certain exemptions (See Table 16 in CSI Handbook)

Cost Responsibility & Caps• Customer must bear all costs for performance meters & for 5

years of performance monitoring (incl. data communication)

• Costs not to exceed 1% of system costs for 30kW and below, 0.5% above 30kW (EPBB Only - See Table 16 for exemptions)

EPBB vs. PBI Accuracy Requirements• EPBB < 10 kW: +/- 5% accurate (inverter meters allowed)

• EPBB > 10 kW & All PBI: +/- 2% accurate

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Meter Requirements

Additional 2% Meter Requirements• Must have Certificate from manufacturer verifying accuracy

• Must be capable of recording 15-minute interval data

• Must have remote communication capability (except EPBB systems < 20 kW that are unable to meet cost cap)

All Meters Must Be Listed by CEC• CEC listing must state that the meter meets the 2%

requirement to be eligible for PBI program

Meter Warranty Requirements• 2007: One-Year Warranty

• 2008+: Five-Year Warranty

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CSI Handbook

Refer to CSI Handbook, Section 2.8 and Appendix B

Table 16 Metering Summary

5% Meter

(Inverter Integrated) 2% Meter

(Standalone Meter) PMRS

EPBB < 10kW Required Optional Required*

EPBB ≥ 10kW and <20 kW N/A Required Required*

EPBB > 20 kW N/A Required Required

PBI (All System Sizes) N/A Required Required

Notes: • PMRS stands for Performance Monitoring and Reporting System *Required unless the cost of the PMRS fall above the cost cap (the cost of the minimum metering, communication, and reporting system over the first five years for each solar installation size grouping shall be less than 1% of total installed cost for systems up to 30 k and 0.5% for larger systems. See CPUC Decision D.06-08-028). The customer seeking exemption must demonstrate to the Program Administrator that they were not able to satisfy the metering requirements within the applicable cost cap. N/A = Not Applicable

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PMRS DocumentationCustomers are required to submit proof that they

have contracted with an eligible Performance Monitoring & Reporting Service (PMRS) provider• PMRS provider must be listed on CEC web site

• PMRS providers must not be “affiliated with the incentive recipient, or any solar manufacturer or installer” (D.06-08-028, Ordering Paragraph 17, page 124)

EPBB customers < 20 kW requesting an exemption per Table 16 must submit evidence that they cannot meet the cost cap• For now, we just need an estimate from an eligible PMRS

provider showing the cost exceeds the cap

• The Program Administrators are working on an exemption form for use in the near future

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Meter Data RequirementsTwo Separate Data Streams:

Performance Data to Customer• Daily, hourly or “real-time” performance data to customer

• Data maintained by PMRS provider per Handbook requirements

• Only PMRS providers listed with the CEC currently eligible

PBI Data to Program Administrator• Monthly kWh produced &15-min. interval data (kW)

• Submitted via approved “Performance Data Provider” (PDP)

• Program Administrators developing PDP requirements

• Electronic Data Interchange (EDI) 867 format (proposed)

• Eligible PDPs may include PMRS providers, PG&E or 3rd parties such as Meter Data Management Agents (MDMAs)

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Meter Installation Options

Customers may contract with utility or qualified 3rd

party providers• Can use any qualified provider for the meter installation, so long

as the meter is CEC-approved & installed to NEC standards and applicable local codes

• We recommend using experienced meter installers for safety & reliability reasons. (See CPUC web site for certified Meter Service Providers)

• Customer responsible for installing meter socket for utility-provided meters

Customers should decide early in the process who will provide meter, PBI data & PMRS service to avoid delays, minimize cost and ensure compatibility

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Meter Requirements Update Petition to Modify submitted on March 5th

• Submitted by PG&E, SDREO (now CCSE), PV Now, CalSEIA, Vote Solar Initiative, & SMA America

If approved, Petition would modify CSI as follows:• All EPBB customers can use +/- 5% (inverter) meters

• Remove cost cap for all PBI customers & confirm 2% meter requirement for all PBI, regardless of size

• Remove requirement for PMRS providers to be unaffiliated with solar vendors & installers

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Meter Requirements Update(Cont’d)

CPUC issued a Proposed Decision (PD) on June 26th that would implement the first two issues CPUC to issue separate PD on the PMRS issue at a later date

CPUC expected to act on first PD at July 26th Commission meeting

We are now in the 30-day comment period The Commission could adopt the PD as is, modify it, or reject it

PG&E to file comments in support of PD

Until/unless CPUC adopts PD, current meter requirements apply

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Meter & PMRS Links Eligible Equipment, MSP’s, MDMA’s, and

PMRS Listings• Eligible Meters – Listed on CEC website: http://www.consumerenergycenter.org/cgi-bin/eligible_meters.cgi

• MSP – Listing on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric+markets/metering/msps.htm

• MDMA – Listed on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric+markets/metering/mdmas.htm

• PMRS – Listed on CEC website: http://www.consumerenergycenter.org/erprebate/monitors+rsp.html

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CSI Application Process

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Program Eligibility Host Customers must perform an energy efficiency audit to be eligible for CSI

incentives

CSI Installers must be listed with the Program Administrators and have an active A, B, C-10, or C-46 license

Self-Installations allowed

All systems must have minimum 10-year warranty covering the solar generating system provided for no cost repair or replacement

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3-Step vs. 2-Step Reservation Process

3-Step Reservation Process• Non-Residential System size >10 kW• Subject to Application Fee of 1% of Requested Incentive Amount• Customers may opt-in to Expedited 3-Step

2-Step Reservation Process• Residential System of any size• Non-Residential Systems <10 kW• No Application Fee

Reservation Period• 12-months for retrofit projects• 18-months for new construction/government/non-profit

All forms available at www.pge.com/csi

Refer to CSI Handbook, Section 4.1

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3 Step Process

Refer to CSI Handbook, Section 4.2

Step 1: Reservation Request Completed Reservation Request Application with Original Signature Proof of Electric Utility Service for Site System Description Worksheet Electrical System Sizing Documentation (new/expanded load only) Application Fee (1% of EPBB Incentive Amount) Certification of tax-exempt status and AB1407 compliance (Gov't and Nonprofit only) Documentation of an Energy Efficiency Audit (if you have not met Title 24 or other exemptions) Printout of EPBB Tool Calculation (www.csi-epbb.com)

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3 Step Process

Refer to CSI Handbook, Section 4.2

Step 2: Proof of Project Milestone Completed Proof of Project Milestone Checklist Host Customer Certificate of Insurance System Owner Certificate of Insurance (if different than Host Customer) Copy of Completed Interconnection Application Copy of executed contract for system purchase and installation Copy of executed alternative System Ownership agreement (if System Owner is different than Host Customer) Project Cost Breakdown Worksheet Revised System Sizing Calculations (If applicable) Revised Incentive Calculation Worksheet (If applicable) CSI Program Contract with Original Signature Copy of RFP or solicitation (Government, Non-profit, and Public Entities only)

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3 Step Process

Refer to CSI Handbook, Section 4.7.2

Step 3: Incentive Form Package Complete Incentive Claim Form with Original Signatures Proof of Authorization to Interconnect and Final Interconnection Agreement Copy of Building Permit and Final Inspection sign-off Proof of Warranty Final Project Cost Breakdown Worksheet Final Project Cost Affidavit

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2 Step Process

Refer to CSI Handbook, Section 4.1

Step 1: Reservation Request Completed Reservation Request Application with Original Signature on CSI program Contract

Proof of Electric Utility Service for Site

System Description Worksheet

Electrical System Sizing Documentation (new/expanded load only) Certification of tax-exempt status and AB1407 compliance (Gov't and Nonprofit only) Documentation of an Energy Efficiency Audit (if you have not met Title 24 or other exemptions)

Printout of EPBB Tool Calculation (www.csi-epbb.com)

Copy of Executed Agreement of Solar System Purchase and Installation Copy of Executed Alternative System Ownership Agreement (If System Owner is Different from Host Customer)

Copy of Application for Interconnection Agreement

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2 Step Process

Refer to CSI Handbook, Section 4.1

Step 2: Reservation Confirmation and Claim

Complete Incentive Claim Form with Original Signatures

Proof of Authorization to Interconnect and Final Interconnection Agreement

Copy of Building Permit and Final Inspection sign-off

Proof of Warranty

Final Project Cost Breakdown Worksheet

Final Project Cost Affidavit

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Avoid Common Mistakes• Include host customer e-mail information• If a customer is a public entity, be sure to provide the

AB1407 letter• If a customer is a non-profit, be sure to provide confirmation

that the system will not be receiving tax benefits• In the “Applicant” section, please provide a contact for the

person who will be handling the paperwork and data requests.

• Please provide future load documentation for non-residential new construction or added load projects.

• Whenever possible, include the application fee check with the initial application

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Website Resources

• PG&E Solar Website: www.pge.com/solar• PG&E CSI Website: www.pge.com/csi• CPUC Solar Website:

www.gosolarcalifornia.ca.gov• Locate Solar Installers: www.find.solar.com• CEC PV Eligible Technologies:

http://www.consumerenergycenter.org/erprebate/equipment.html

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Additional PG&E ResourcesPacific Energy Center and Stockton Training Center:

Solar Classes: http://www.pge.com/solarclasses/• Basics of Photovoltaic (PV) Systems for Grid-Tied

Applications • Solar Water Heating Systems • Field Verification and Diagnostic Testing of Photovoltaic

Systems for HERS Raters • Understanding Financial Analysis Methods for Photovoltaic

(PV) Systems Diagnostic Tool Lending Library

• Solar Pathfinder• Solmetric SunEye• All tool requests must be submitted online via our online tool

request form at www.pge.com/pec. The Request to Borrow Tools link at the top of the page brings borrower to our online tool request form.

• We request 2 to 3 days lead time for tool requests.

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PG&E Contact Information Website: www.pge.com/csi Email Address: solar@pge.com Contact Person:

Program Manager, Telephone: (800) 743-5000 Fax: (415) 973-8300 Mailing Address:

PG&E Integrated Processing CenterCalifornia Solar Initiative ProgramP.O. Box 7265San Francisco, CA 94120-7265

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Generation Interconnection Services

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GIS Role

• One point of contact for customer (or authorized agent) with regard to interconnecting systems

• Coordinate various activities, including engineering, metering, and contract administration

• Responsible to ensure system is installed as design indicates and operating according to Rule 21

• Two types of solar interconnections: NEM and non-NEM options

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Process Improvement• Change in AC disconnect requirement policy –

November 2006

• NEM-MT has been approved to permit projects with solar combined with other generation technologies

• Underway: simplification of application, to be combined with the Agreement for NEM

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Interconnection Application and Agreement

• A separate application and process from CSI (recently updated)

• Process runs parallel with CSI/SGIP

• Application must be complete and include required documents for review

• Execute Inspection and Interconnection Agreement before a system is permitted to operate

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Project Review NEM Non-NEM Analysis of system Single-line diagram (SLD) SLD, Site Diagram Protection n/a in most cases Larger systems/interconnection at

which level (distribution vs transmission)

Metering (revenue meter)

Bi-directional required No metering change

Net Gen Meter (NGOM)

Dependent upon size and/or selection (EPBB vs PBI); meter must conform to standards

AC Disconnect Self-contained meter – not required; Transformer-rated meter- required (Table 7-3, 2007 PG&E “Green Book”)

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Inspection

• Check system to ensure built as designed (matches SLD)

• Install bi-directional meter (NEM)

• Verify installation of AC disconnect and appropriate signage (if required)

• Install Net Gen Output Meter, if needed

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Overall Timeline

• NEM projects- generally less than 30 business days

• Non-NEM- within 60 days, if all required docs/signatures and construction is on schedule

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Total NEM Applications Received

0

100

200

300

400

500

600

700

800

900

1000

Janu

ary

Febr

uary

Mar

ch April

May

June July

Augu

st

Sept

embe

r

Oct

ober

Nove

mbe

r

Dece

mbe

r

App

licat

ions

Rec

eive

d

2004 2005 2006 2007

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Total NEM Interconnections

0

100

200

300

400

500

600

Janu

ary

Febr

uary

Mar

ch April

May

June Ju

ly

Augu

st

Sept

embe

r

Octo

ber

Nove

mbe

r

Dece

mbe

r

Mon

thly

Inte

rcon

nect

ions

2004 2005 2006 2007

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May(Standard & Expanded)

438

9 50

100

200

300

400

500

600

Within 12 Over 12 to 30 Over 30

App

licat

ion

Cou

nt

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Resources

• Standard NEM: http://www.pge.com/suppliers_purchasing/new_generator/solar_wind_generators/standard_e_net/

• Expanded NEM: http://www.pge.com/suppliers_purchasing/new_generator/solar_wind_generators/expanded_e_net/

• Non-NEM projects: http://www.pge.com/suppliers_purchasing/new_generator/retail_generators/

• Contact: gen@pge.com, or 415-972-5676